Fugro’s strategy is built on two pillars, one representing ‘what’ we do (the portfolio of activities including our service offerings), and the second pillar representing ‘how’ we do it (market leadership, organisational capabilities, innovation and multi-market exposure).
The Geotechnical and Survey divisions will continue to provide a sound core to the company. With these activities Fugro has built up global, market leading positions. Fugro will continue to build on the strengths of the activities in these divisions.
Early 2015, Fugro announced the objective to reduce its involvement in other activities by seeking options to reduce its stake in Seabed Geosolutions, to find a partner for or divest (part of) Subsea Services and to exit the light well intervention market by selling the Fugro Synergy vessel. In the current challenging market circumstances, we have not yet been able to execute on these plans. We remain committed to making the portfolio changes over time as the market permits.
In our survey and geotechnical businesses, we continue to broaden our service offering to better address the needs of our clients. We are creating the capability to efficiently provide integrated geo-intelligence and asset integrity solutions spanning the range from data acquisition through processing, interpretation, analysis, visualisation and web data and information delivery, to generating solutions by providing consulting services. Our ability to offer integrated solutions is a competitive advantage, especially in the oil services market, where the prolonged market downturn is driving the need to cut unproductive costs from the supply chain.
Fugro has achieved global market leadership in the offshore survey and geotechnical markets, and holds strong or leading positions in many of its onshore regional or local markets. Fugro’s market leadership is predicated on being an independent services provider, assuring our clients that the results are provided impartially and confidentially and with the further assurance there is no conflict of interest with respect to other parties involved in their projects.
Fugro can deliver on the solutions required by its clients through the regional organisations it has successfully implemented in the last two years. This has increased Fugro’s capability to take on more and larger integrated projects. As a next step, we are now driving for integration of operating companies in our onshore and offshore work environments to streamline project delivery to our clients and to realise efficiency gains. As a further benefit, organisational integration will also support moving to single country support organisations for administration, HR, IT, QHSSE and legal.
Technology leadership and innovation
Fugro’s globally leading market position is supported by its technology leadership. Fugro uses high-performance equipment, technologies, software and business processes. Much of these are developed in-house through research & development and innovation. This capability is a core strength of Fugro as a key strategic driver.
Fugro has established a strong tradition since developing electric cone penetration testing (CPT) in the 1960s. During the last 2 years, Fugro has stepped up its research and development and innovation efforts and this is now delivering concrete results.Our Innovations
Currently Fugro generates around 75% of its revenue from the oil and gas services market. Within that market, over the last few years, Fugro has moved to create a balanced exposure across the exploration, development, production and decommissioning life cycle.
However, we need to create a better balance across multiple markets. Hence, Fugro targets to increase its exposure to the general infrastructure and large construction, power, water and mining markets. These markets run in different economic cycles than the oil and gas markets.